U.S. Court Orders Ghana to Pay $111 Million to GPGC

The Ghanaian government has been ordered to pay $111,493,828.92, along with post-judgment interest, by a District of Columbia Court in the United States.

This ruling comes after Ghana ignored a prior tribunal decision from the United Kingdom.

The dispute arose after Ghana terminated a power purchase agreement with GPGC on February 18, 2018.

On January 26, 2021, a UK tribunal ruled that Ghana had breached its contractual obligations, awarding GPGC $134,348,661 in damages based on the agreement’s Early Termination Payment formula.

GPGC’s additional arbitration fees and expenses amounted to $3,309,877.74, with interest calculated using the three-month USD LIBOR and six-month USD LIBOR + 6% rates.

GPGC filed a lawsuit in the U.S. District Court on January 19, 2024, seeking to recover the debt.

Ghana received the court petition on January 23, 2024, and was served the signed certification on January 29, 2024. Despite this, Ghana did not respond by the March 29, 2024, deadline.

The U.S. court, citing the New York Convention, which recognizes international arbitral awards, ruled in favor of GPGC.

Chief Judge James E. Boasberg noted that the award stemmed from a commercial transaction and thus fell under the Convention’s jurisdiction.

While pre-judgment interest was not awarded, the court’s decision imposes a financial burden on Ghana through post-judgment interest in accordance with U.S. regulations.